Profits, Not Crude Oil Prices Or Ethanol, Are Driving Pump Price Spike

[IChing]

New Gasoline Study Shows Profits, Not Crude Oil Prices Or Ethanol, Are Driving Pump Price Spike

Santa Monica, CA --
The Foundation for Taxpayer and Consumer Rights released a new study today of rising gasoline prices in California that found corporate markups and profiteering are responsible for spring price spikes, not rising crude costs or the national switchover to higher-cost ethanol, as the oil industry claims.

Independent petroleum consultant Tim Hamilton analyzed gasoline price increases from January to April to find that:

Increases in the "spot" market price of crude oil -- which is the highest price a major oil company would pay for crude oil -- accounted for only 12 cents per gallon. California's percentage sales tax increased fuel prices by another four cents per gallon. More than 40 cents of the 60-cent increase in gasoline prices over 3 1/2 months is attributable to increased refinery and marketing profit margins for the oil companies;

Neither the MTBE phaseout nor the substitution of ethanol is a serious part of the increase. If the MTBE phaseout or ethanol blending specifically increased costs for oil companies in California, other states in the West using conventional unblended gasoline should be much less affected. Yet Washington State, which uses only conventional gasoline and has similar refinery capacity and crude oil sources, mirrored California's increase;

The profit increase of 42 cents, on top of record profits last year, means California gasoline will cost consumers approximately $546 million more in April 2006 than in April of last year.

"While oil companies continue to blame crude oil prices and ethanol additives for the recent gasoline price spikes in California, the chief cause is increased profiteering by oil companies that have previously posted world record profits," said Hamilton.

"Oil companies are opportunistically using the rising world price for crude oil as an excuse to excessively raise gasoline prices and pump up their profits, even though the spot market price for crude has gone up far more slowly than gasoline prices," said FTCR President Jamie Court.
"In addition, the spot price is higher than most oil companies pay, since they either harvest their own crude or pay more stable and often much lower contract prices.
>>>>>>>snip.................http://www.consumerwatchdog.org/energy/pr/?postId=6133

[lvx35]

1. I knew it!

can't you just SEE republicans sitting around, saying "well, it appears the world is really running out of oil, we need a solution. I know, let's stimulate the development of alternative energy by allowing the oil companies to practice price fixing, provided that we get a huge cut! That'll get the ball rolling!"

[IChing]

2. I think this a good study for Lee to comment on.

Of course you know who Lee is, other wise known as Jabba
















chairman of Exxon.

[LaPera]

3. Contolling the flow of oil the less oil on the market the higher the price

at the pump!

As simply as supply and demand,, and they indeed are controlling the supply (flow) in Iraq, Saudi Arabia, etc...

[IChing]

5. Not according to this study

Increases in the "spot" market price of crude oil --
which is the highest price a major oil company would pay for crude oil --
accounted for only 12 cents per gallon.

California's percentage sales tax increased fuel prices by another four cents per gallon.

More than 40 cents of the 60-cent increase in gasoline prices over 3 1/2 months is attributable to increased refinery and marketing profit margins for the oil companies;

[Gman]

4. Its all in the minutes of Cheney's energy task force meetings

this was agreed to several years ago. The US government is allowing it to happen.

[IChing]

6. It is not "supply and demand" but actually rape of the consumer

No wonder these fuckers were never put under oath in the Senate Hearings

Look at their lobbying expenses.
Exxon..............$59 million
Chevron...........$32 million
Marathon oil....$29 million
BP....................$26 million
Shell.................$26 million


Funny you don't see Citgo, Venezuela's oil company in the list...duh.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2579068

[Gman]

8. Very interesting Citgo's not on the list

That means not one cent to a Republican or a Democrat.

[Roland99]

7. Kick